IMF: “Economic growth in Russia expected to speed up”

Baku. 20 November. REPORT.AZ/ “A cyclical recovery in Russia speeding up after a two-year recession, with growth expected to reach around 2 percent this year. Nevertheless, growth is likely to remain low in the medium-term, due to demographic indicators, unresolved structural bottlenecks, as well as long-term sanctions.”

Report informs referring to Kommersant newspaper the experts of International Monetary Fund (IMF) said commening on the results of the visit to Russia in the period from November 13 to 17.

Experts said inflation is likely to be just under 3 percent at end-2017, but it is expected to return to around 4 percent target soon thereafter. Experts believe the current balance of payments in Russia will improve.

According to IMF the banking system appears stable, notwithstanding the recent reorganization of two prominent banks.

IMF said the lending activity continues to increase in the country. However, asset quality remains a key weakness and there are risks that provisioning may be low in some banks.